Greece Approaches The Final Showdown

The Greek austerity program could work but its domestic economic consequences might be so devastating that it precipitates its own crisis. Whether it could work or not may be entirely academic. If the bond market doesn't believe it will work, Greece will never have a chance to try it.

Here's what we think won't work: halfway implied guarantees meant never to be actually tested. We explained why on the Kudlow Report last night.